Credit Acceptance (NASDAQ:CACC) Hits New 12-Month High – Should You Buy?

Credit Acceptance Corporation (NASDAQ:CACC) shares hit a new 52-week high during trading on Tuesday . The stock traded as high as $583.86 and last traded at $577.4730, with a volume of 13487 shares traded. The stock had previously closed at $572.79.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on CACC shares. Zacks Research cut shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a report on Wednesday, May 13th. Weiss Ratings raised Credit Acceptance from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, May 8th. Stephens increased their target price on Credit Acceptance from $450.00 to $540.00 and gave the company an “equal weight” rating in a research note on Friday, April 17th. Finally, TD Cowen lifted their price target on Credit Acceptance from $450.00 to $500.00 and gave the stock a “hold” rating in a research report on Wednesday, May 6th. Four investment analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $520.00.

Credit Acceptance Stock Performance

The firm’s fifty day moving average price is $525.45 and its 200-day moving average price is $487.83. The company has a market cap of $6.05 billion, a P/E ratio of 14.37 and a beta of 1.38. The company has a current ratio of 13.62, a quick ratio of 13.62 and a debt-to-equity ratio of 4.09.

Credit Acceptance (NASDAQ:CACC) last released its earnings results on Tuesday, May 5th. The credit services provider reported $10.71 earnings per share for the quarter, missing the consensus estimate of $10.73 by ($0.02). Credit Acceptance had a net margin of 19.49% and a return on equity of 29.95%. The company had revenue of $406.00 million during the quarter, compared to the consensus estimate of $580.77 million. During the same quarter in the previous year, the business posted $9.35 EPS. The firm’s quarterly revenue was up 1.6% on a year-over-year basis. As a group, research analysts forecast that Credit Acceptance Corporation will post 47.5 EPS for the current fiscal year.

Insider Buying and Selling

In other news, major shareholder Jill Foss Watson sold 9,450 shares of Credit Acceptance stock in a transaction that occurred on Tuesday, April 21st. The stock was sold at an average price of $538.52, for a total transaction of $5,089,014.00. Following the sale, the insider owned 92,107 shares of the company’s stock, valued at approximately $49,601,461.64. This trade represents a 9.31% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Kenneth Booth sold 4,000 shares of the business’s stock in a transaction that occurred on Monday, April 20th. The shares were sold at an average price of $534.00, for a total value of $2,136,000.00. Following the sale, the director owned 22,832 shares in the company, valued at approximately $12,192,288. This represents a 14.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 26,527 shares of company stock worth $14,203,265. 6.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Credit Acceptance

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Empowered Funds LLC acquired a new position in Credit Acceptance in the first quarter worth about $278,000. Parallel Advisors LLC grew its stake in shares of Credit Acceptance by 590.0% in the 1st quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock valued at $29,000 after purchasing an additional 59 shares during the period. Bank of America Corp DE raised its holdings in shares of Credit Acceptance by 47.9% in the 1st quarter. Bank of America Corp DE now owns 44,586 shares of the credit services provider’s stock worth $18,880,000 after buying an additional 14,439 shares in the last quarter. Altshuler Shaham Ltd lifted its position in shares of Credit Acceptance by 37.3% during the 1st quarter. Altshuler Shaham Ltd now owns 70 shares of the credit services provider’s stock worth $30,000 after buying an additional 19 shares during the period. Finally, California State Teachers Retirement System lifted its position in shares of Credit Acceptance by 19.9% during the 1st quarter. California State Teachers Retirement System now owns 6,308 shares of the credit services provider’s stock worth $2,671,000 after buying an additional 1,046 shares during the period. Institutional investors own 81.71% of the company’s stock.

Credit Acceptance Company Profile

Credit Acceptance Corporation, founded in 1972 and headquartered in Southfield, Michigan, is a specialty finance company focused on the indirect automotive lending market. The company partners with independent and franchised auto dealers to facilitate purchase financing for consumers who may not qualify for traditional prime auto loans. By purchasing retail installment contracts originated by these dealers, Credit Acceptance provides capital and credit insurance to support vehicle sales, enabling dealers to broaden their customer base and reduce credit risk.

Through its proprietary underwriting platform and risk management strategies, Credit Acceptance evaluates borrower applications, structures credit plans, and retains servicing rights on the acquired contracts.